South Jersey Home Buyers Regain Negotiating Power as Seller's Market Eases

After several years in which buyers routinely accepted unfavorable contract terms and absorbed costs that traditionally fell to sellers, the balance in South Jersey real estate negotiations is beginning to shift. Matt Donnelly, a Realtor with Century 21 Alliance in Gloucester County, reports that buyers are no longer automatically agreeing to extra costs or conditions that became common during the most competitive years of the recent seller’s market. While the market still favors sellers, buyers are now more willing to negotiate and reject demands that go beyond standard contract expectations.

“They are coming around to the idea that they can have higher expectations,” Donnelly says. He recalls that in the past two or three years, buyers often felt compelled to accept any terms to secure a home, even when those terms were unfavorable.

Donnelly notes that buyers who purchased homes between 2021 and 2023 were frequently those with no choice but to buy, forcing them to accept whatever pricing and contract terms sellers required. Today, buyers in Burlington, Gloucester, and Camden counties are becoming more selective about what they are willing to accept at the negotiation table.

Certificate of Occupancy Costs Shift Back to Sellers

One clear example is the handling of certificate-of-occupancy costs in New Jersey. Traditionally, sellers have been responsible for obtaining this certificate before closing, as outlined in standard contracts. During the peak of the seller’s market, sellers often shifted this responsibility to buyers as a condition of sale.

Donnelly says he used to enter negotiations expecting buyers would have to take on this cost, but that is changing. Buyers are refusing to accept this concession unless it is specifically required. “Buyers are saying, if it’s not my responsibility, I’m not just going to offer to pay for it,” Donnelly says. Sellers are finding they can no longer count on offloading this work and cost to buyers.

Obtaining a certificate of occupancy in New Jersey involves municipal inspections to confirm that a property meets local building codes and safety standards. The process can lead to unexpected repairs and additional costs. When buyers accepted this responsibility, sellers avoided both the expense and the risk of delays if the property did not pass inspection. Sellers are now discovering that buyers are less willing to take on these obligations, forcing some to address repairs and compliance issues themselves.

Above-Appraisal Offers Become Less Common

Another practice that has become less common is buyers agreeing to pay above appraised value. In the most competitive phase of the market, buyers frequently committed to covering any gap between the purchase price and the appraised value, ensuring sellers would not face complications with financing.

“Those kinds of things are not nearly as common now,” Donnelly says. While some buyers are still willing to make such offers in rare cases, far fewer transactions involve buyers agreeing to pay above the appraisal.

Paying above appraisal posed significant risks for buyers, requiring them to bring extra cash to closing or renegotiate if the property appraised below the agreed price. Sellers benefited by receiving offers higher than what lenders would finance based on comparable sales. As buyers regain confidence and become more aware of their rights, they are less likely to accept terms that expose them to additional financial risk. Donnelly says both buyer preference and stronger guidance from agents and attorneys drive this change. Buyers are now more likely to question non-standard demands and insist on contract terms that align with historical norms.

The Market Still Favors Sellers, but Contract Terms Are Evolving

Despite these changes, Donnelly emphasizes that the overall South Jersey market remains favorable to sellers. Inventory is still limited, and well-priced properties continue to sell quickly, often attracting multiple offers. The shift he describes is more about the specifics of contract negotiations than a fundamental change in supply and demand.

“I would call it subtle,” Donnelly says. “But yes, for sure, 100 percent.” Sellers still benefit from strong demand and low inventory, but can no longer assume buyers will accept every condition. Buyers are not in a position to dictate terms, but they have regained some leverage to negotiate on contract provisions that had become one-sided during the most competitive years.

Donnelly’s experience suggests that the extreme seller’s market conditions of 2021 to 2024 are easing. The shift is not the result of a dramatic increase in inventory or a drop in demand, but of buyers and their representatives pushing back against non-standard terms and seeking fairer deals.

How These Shifts Are Changing the Way Transactions Are Structured

These changes are affecting how transactions are structured and how both sides approach negotiations. Sellers who expect to transfer all costs and responsibilities to buyers may find their homes sitting on the market longer or encounter resistance that complicates or delays closings. Buyers who work with experienced agents and understand which terms are standard are in a stronger position to negotiate and avoid unnecessary concessions.

Donnelly notes that the recalibration is ongoing and may continue as more participants adjust to these new dynamics. Sellers who are slow to recognize the shift may need to adjust their expectations. Buyers who are aware of their negotiating position can achieve more favorable outcomes, even when competition remains high. Century 21 Alliance is advising clients to recognize these shifts. Sellers are encouraged to recognize that they still have leverage but should not expect buyers to accept every demand. Buyers are being told that, while the market remains competitive, they have more room to negotiate than in recent years.

What Buyers and Sellers Should Expect as South Jersey Negotiations Normalize

The South Jersey real estate market is not entering a buyer’s market, but the era of buyers accepting any term to secure a home appears to be ending. Buyers are now more likely to push back on costs and conditions that fall outside standard contract terms, forcing sellers to reconsider how they approach negotiations.

For both buyers and sellers, the key is understanding where the leverage lies and how expectations have shifted since the height of the seller’s market. As buyers become more assertive and sellers adjust to a less one-sided environment, negotiation is once again central to the transaction process in South Jersey real estate.